The Securities and Exchange Commission said Wednesday it issued a cease-and-desist order against Sophia Francisco Holding OPC and BeastnessAllDay Corp. over alleged illegal investment scheme.
It issued an order dated Nov. 24 asking Sophia Francisco Holding OPC and its affiliates Financial Consultancy Services Sophia-Francisco and Sophia Francisco Trading to stop offering and selling investments to the public without the necessary license the regulator.
“The act of Sophia Francisco Group in selling/offering securities sans the requisite license from the commission operates as a fraud to the public which, if unrestrained, will likely cause grave or irreparable injury or prejudice to the investing public,” the SEC said.
The group was also ordered to cease its internet presence relating to its investment scheme. They were further prohibited from transacting any business involving funds in its depository banks and from transferring, disposing or conveying any related assets to ensure the preservation of the assets of the investors.
The SEC said that based on its investigation, Sophia Francisco Group offered investments worth as low as P500 with guaranteed earnings of up to 3 percent daily for 20 days. It also gave a 5-percent referral fee to those who could invite new investors into the group.
It said that while the Sophia Francisco Group is registered as a one-person corporation with the SEC, it had not been issued a secondary license that would authorize it to solicit investments from the public, nor did it have a pending application for such license.
The SEC also directed BeastnessAllDay, led by owner and chief executive Angelo Diaz Parian to stop engaging in investment solicitation activities despite not having the authority to do so.
It said BeastnessAllDay was promising investors between 10-percent and 12-percent monthly returns after a five-month period to investors who invest P50,000 into the group.
The guaranteed returns will supposedly come from its investments, sale of gadgets, real and personal properties, luxury vehicles, shoes and other apparels, according to the regulator.
“The products and business are, however, all a sham, and are utilized to entice the public to part with their hard-earned money,” the SEC said.